// Footfall fell 2.3% over the week to 22 October
// Consumer confidence also plummetted to an all-time low over the last quarter
Footfall dipped “noticeably and comprehensively” last week, according to data specialists Springboard, as the cost-of-living crisis and political turmoil took its toll.
Visitors to all retail destinations fell 2.3% in the week to 22 October, with footfall down across high streets, shopping centres and retail parks, and across all UK regions bar one.
Springboard said that the squeeze on household incomes as a consequence of inflation and increased mortgage rates, combined with the current political uncertainty had made consumers consumers cautious.
High streets were worst hit, with a 3.3% decline, followed by retail parks, which experienced a 1.5% dip. Shopping centre visitors dropped 0.7%.
Footfall was up 5.9% on the same period last year, a time when the country was emerging from the pandemic, but is down 11.1% on 2019’s pre-Covid levels.
The drop comes as many households face a jump in mortgage and other costs after the mini-budget in September.
The biggest decline was in the West Midlands, with footfall down 3.7% compared with the week before, while central London visitor numbers were down 3.3%.
Springboard insights director Diane Wehrle said: “There are several factors at play in terms of what is driving consumer activity; however, the most evident is the squeeze on household incomes as a consequence of inflation and increased mortgage rates.
“This, mixed in with the current political uncertainty, inevitably makes consumers cautious and then rein back on shopping trips.”
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Meanwhile, consumer confidence plunged to a record low in the three months to 30 September, according to Deloitte’s Consumer Tracker.
The -20% score recorded in the third quarter was twice as low as a year ago, and the lowest level since Deloitte began compiling the tracker in 2011.
This is the fifth consecutive quarter in which consumer confidence has fallen.
The tracker found that consumer spending power remains significantly strained, as sentiment around levels of debt also reached the lowest levels on record, at -17%; two percentage points below Q2 2022.
The tracker found that consumers are cutting back on both essential and non-essential goods, which decreased by two and one percentage points respectively.
Almost a third (30%) of consumers said they are now spending less, up from 21% at the start of the year.
Deloitte consumer insight lead Céline Fenech said: “Consumers are making conscious efforts to cut-back on all spending. With rising food prices and personal finances coming under further pressure from higher energy bills, we are seeing a contraction in consumer demand.”
Shoppers are taking a range of approaches to save money, with 57% trying to reduce their home energy consumption, 40% spending less on clothes and shoes, and 22% of respondents have ended, or intend to end, an entertainment subscription.
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